Analysis Of Operating Activity-Based Costing Management In Tian'an Pharmaceutical Enterprise

Activity-based cost management includes not only the cost accounting dimension based on activity-based costing,but also the cost control dimension based on activity-based management.The cost accounting dimension is the process of calculating the cost of the product based on the resource motivation to allocate resources to the operation and the operation to the product according to the operating motivation.The cost control dimension is the process of process improvement and process optimization through cost motivation analysis and operation management.Can effectively reduce costs.However,as an advanced cost management method,the operation cost management is not used by most enterprises,and it has faced difficulties in its development history.The reason is that the operation cost management has higher requirements for the implementation environment,such as the need for high-quality financial personnel,the requirements for advanced technology,and the demand for information system support.At present,there are fewer enterprises capable of implementing it.Secondly,to completely subvert the traditional cost calculation method,the operation cost management involves a wide process and high implementation cost,which hinders the implementation of the operation cost management;Finally,it is precisely because the domestic implementation of operating cost management enterprises,can refer to the few cases,so most enterprises dare not rush to implement this cost management.Most of the domestic pharmaceutical companies are small and medium-sized enterprises,and they do not pay enough attention to cost management.However,under the fierce market competition environment,the cost control of pharmaceutical companies is urgent,and it is necessary to introduce advanced cost management methods to obtain accurate cost information.And make business decisions accordingly.Tianan Pharmaceutical Industry introduced operating cost management in 2016.With the help of this system,Tianan Pharmaceutical's product cost is lower than the industry average,and its operating performance is better than that of other counterparts.As a pharmaceutical company that has successfully implemented operating cost management,this paper analyzes the application of operating cost management in Tianan Pharmaceutical Industry to provide reference and reference for other enterprises that plan to implement the system.The full text first expounds the background and significance of the topic selection,combs the current domestic and foreign research results on operating cost management,then takes the definition of related concepts as the starting point,summarizes the key procedures for implementation,and introduces the theoretical basis.Combined with the case of Tian 'an Pharmaceutical's operating cost management,the background,necessity and feasibility of its implementation are analyzed.This paper analyzes the basic work of the operating cost management,the cost accounting based on the operating cost method,the cost control based on the operation analysis,and the application of the operation cost management information in the operation decision.In the implementation of the basic work of operation cost management,this paper from the identification,definition and classification of operations,the establishment of resource base,operation center and operation cost base,cost accounting account redesign three aspects;In terms of cost accounting based on activity-based costing,this paper analyzes the three processes from the distribution of resource costs to the operating cost base,the distribution of operating costs to the cost object,and the accounting processing of major businesses.In terms of cost control based on job analysis,this paper analyzes four processes: defining the root causes of the changes in operating costs,distinguishing between value-added and non-value-added operations,managing operations to reduce costs,and evaluating performance.In the application of operation cost management information,this paper discusses four aspects: customer/market decision,design/production decision,supplier decision and product pricing based on operation cost management.Finally,from the basic work,cost accounting,cost control and management decision application of the operation cost management of tianan pharmaceutical industry,this paper summarizes the experience and attention of the operation cost management of tianan pharmaceutical industry.Setting up operation center,identifying motivation,analyzing operation and making full use of cost information is the important experience of operation cost management successfully implemented by Cheonan Pharmaceutical.In addition,the improvement of data quantity management system and innovation incentive system will help to ensure the smooth implementation of operating cost management and give full play to the advantages of cost management.